Many more people are without jobs to day than what was the case during the previous three U.S. recessions, and the peak of unemployment in the current cycle – at 10.5% according to Moody’s – will not arrive until the 3rd quarter of this year.

Many more people are without jobs to day than what was the case during the previous three U.S. recessions, and the peak of unemployment in the current cycle – at 10.5% according to Moody’s – will not arrive until the 3rd quarter of this year.

Many more people are without jobs to day than what was the case during the previous three U.S. recessions, and the peak of unemployment in the current cycle – at 10.5% according to Moody’s – will not arrive until the 3rd quarter of this year.

Many more people are without jobs to day than what was the case during the previous three U.S. recessions, and the peak of unemployment in the current cycle – at 10.5% according to Moody’s – will not arrive until the 3rd quarter of this year.

Many more people are without jobs to day than what was the case during the previous three U.S. recessions, and the peak of unemployment in the current cycle – at 10.5% according to Moody’s – will not arrive until the 3rd quarter of this year.

Many more people are without jobs to day than what was the case during the previous three U.S. recessions, and the peak of unemployment in the current cycle – at 10.5% according to Moody’s – will not arrive until the 3rd quarter of this year.

Many more people are without jobs to day than what was the case during the previous three U.S. recessions, and the peak of unemployment in the current cycle – at 10.5% according to Moody’s – will not arrive until the 3rd quarter of this year.

Many more people are without jobs to day than what was the case during the previous three U.S. recessions, and the peak of unemployment in the current cycle – at 10.5% according to Moody’s – will not arrive until the 3rd quarter of this year.

9.
Housing Outlook<br />Housing largely a local market <br />Some areas improving, but long road ahead<br />New home sales in 09 driven by 1st time homebuyers (tax credits)<br />In Jan 10, fell to lowest level in nearly 50 yrs<br />Existing home sales continued to fall over summer, 2010, but some<br /> improvement was expected by year end<br />Buyers of second homes:<br />Typically 40-60 yrs of age<br />Large pool of Baby Boomers now, but purchases affected by downturn in market<br />Foreclosures expected to be higher in 2011 than 2010<br />

17.
Strong appetite for luxury brands and goods</li></li></ul><li>Why Members Join<br />Private club golfers participating in NGF’s research study indicated different reasons for joining a private club that varied with the type of club…<br /><ul><li> Members of both country clubs and golf-only clubs join for the</li></ul>convenience and quality of the golf course and…<br /><ul><li>Country club members also placed a high priority on other amenities</li></ul>for themselves and their families<br />Source: National Golf Foundation<br />

21.
Age First Joined Club<br />(Current Country Club Members)<br />The Gen Y population is reaching the age when, historically, the majority of current members joined a country club (30-39 years old)<br />Source: National Golf Foundation<br />

44.
Golf Report<br />100 – 200 courses per year will close until supply and demand reach equilibrium<br />2009 net loss was 90 clubs (140 closed)<br />2010 net loss was 61 clubs (107 closed)<br />1/4 of closures in the past decade were private clubs<br />10 – 15% of public courses at risk<br />Two out of three core golfers remain passionate<br />Business of golf faces an economic outlook that is sinking like a downhill putt (WSJ)<br />

48.
Majority of occasional golfers (1-7 rounds/year) expect to keep playing over next 10 years but see little reason to join a club</li></li></ul><li>Family Friendly Golf<br />Clubs that provide experiences for the entire family are growing in popularity. Family lessons, “short course” set up, kid friendly vehicles all serve to improve the value of membership in many clubs. <br />Kids Car – With Duel Safety Brakes and Foot Activated Turn On and Shut Off Switch<br />4-Seat Family Golf Car<br />Short Course & <br />Par 3 Courses<br />

49.
Golf Clubs & Members<br /><ul><li>The number of private golf clubs throughout the U.S. is approximately </li></ul>4,400, or about 30% of all golf facilities<br /><ul><li> Currently, there are 2.1million private club adult golfers in the U.S.,</li></ul>which represent about 9% of all adult golfers and 6% of the Mass <br />Affluent<br /><ul><li> Private golfers are important to the golf industry because they are</li></ul>disproportionately avid players and spendersversus public golfers<br /><ul><li> Private club golfers play and spend 3xas much as public golfers and

50.
The majority joined their clubs before they turned 50 years old</li></ul>Source: National Golf Foundation<br />

51.
Golf/Country Club Membership<br />Likelihood of remaining a member for 5 years:<br />66% very likely to stay<br />20% “on the fence” <br />10-15% at risk of leaving<br />Reasons they might leave (other than relocation):<br />Dues too expensive 46%<br />Might not be able to afford it 38%<br />Opt for high end public courses 36%<br />Cost per round hard to justify 33%<br />Retention much higher if spouse is a golfer<br />Juniors (age 6-17) 10% of total golfers<br />Source: National Golf Foundation<br />

52.
Golfer Profile & Spend<br />Distribution of Golfers by Age and Spending<br />Along with the cruise and toy subindustries, golf could potentially be well positioned to benefit from demographic-led spending trends.<br />Source: National Golf Foundation and Wells Fargo Securities, LLC<br />

54.
Issues for Women Golfers<br />Study sponsored by The Little Family Foundation to understand key issues for women golfers <br />Key findings:<br />For female golfers, a round of golf is as much a social experience as a competitive one. Social aspects carry even more weight for Lapsed Golfers.<br />Many women are frustrated by their inability to hit far enough and to complete a round in a reasonable amount of time. <br />Data suggests that the deck is stacked against them, with holes that are in fact significantly longer than most women can hit. <br />Source: “The Right Invitation: A Comprehensive Research Study to Guide the Golf Industry to Meaningfully <br />Increase Women’s Golf Participation and Satisfaction;” Sports & Leisure Research Group<br />

55.
Increasing Rounds for Women Golfers<br />Women golfers are seeking a pleasant social outing, not a test of their physical and emotional stamina. Thus, lack of basic comforts and amenities are key detractors to their enjoyment of the game. <br />Women also care a great deal about, and perceive the following to be problem areas that can be significant stressors:<br />Condition and aesthetics of the course<br />Ease of booking tee times<br />Ample directional signage on the course<br />Source: “The Right Invitation: A Comprehensive Research Study to Guide the Golf Industry to <br />Meaningfully Increase Women’s Golf Participation and Satisfaction;”Sports & Leisure Research Group<br />

73.
Health Bar and Grill</li></ul>“The Women’s Market opportunity is Number One and there’s no close second for the foreseeable future…”<br />~ Tom Peters<br />In 2010 Women own 50% of U.S. Stocks & control 60% of the wealth.Women influence 94% of purchases in the U.S. <br />

74.
Spas<br />4th largest leisure industry in U.S. – $11 billion annual revenue<br />18,000 spas in U.S. <br />70% of users are women<br />Men are a growing market – “not just a shave and haircut”<br />Average age of users: 40 yrs<br />23% of clubs now have spas<br />50% of clubs with spas say demand is increasing<br />29% of clubs use independent contractors; 25% have full and part-time staff <br />

75.
Key Club Strategies<br />Accommodate youth and family to get them more involved in the club<br />Youth camps, movie nights, family camp night on the golf course, teen clubhouse or junior lounge<br />Expanded pool facilities (water parks)<br />Fitness areas for youth<br />Expansion of junior sports programs (golf, tennis)<br />

77.
Demographics: Population Trends<br />Overall growth in U.S. <br /><ul><li>Reached 300 million in 2007; 400 million by 2040 (doubling every half century)

78.
Nearly half of current growth is immigrants (legal and undocumented)

79.
12% of population is foreign-born</li></ul>Growth in population > 65 yrs <br /><ul><li>Will more than double between 2010 and 2030, growing from 35 million to 72 million</li></li></ul><li>Demographic Overview<br /><ul><li>The American population is changing at a rapid pace.

80.
A record number of babies—4,315,000—were born in the U.S. in 2007. The last time the number was that high was in 1957 in the middle of the baby boom.

81.
The U.S. population is expected to reach 439 million by 2050, from 296 million in 2005, according to the Pew Research Center. </li></ul>82% of that increase will be due to <br />immigrants arriving between 2005 and 2050<br />

82.
Change in U.S. Population<br />Projected Racial Changes Based on Current Rate of Immigration<br />1995<br />2050<br />The minority population is approximately 12% of the population today…by 2050 it is projected to be 19%. <br />Source: National Research Council Study<br />

83.
The Boomers: Are We Ready?<br />8,000 turning 60 each day – 70 million will retire in next 40 years<br />Now 1/3 of U.S. adult population – control 70% of total U.S. net worth (spending $2 trillion/yr) <br />Boomers are reinventing how peopleover 60 live (“60 is the new 40”) <br />Fitness a priority – likely to remain active<br />Working “Retired”: 1/3 of workers over 50 likely to delay retirement<br />By 2015, those over 50 will be 1/3 of the entire workforce, many in “encore” careers<br />

84.
Boomers Trends to Watch<br />Seeking communities with:<br />Active lifestyles <br />Social interaction <br />Learning/education<br />Recreation, health and fitness<br />Motivated to move by home that meets needs of their new life stage<br />20% plan to build new home for retirement<br />Looking for maintenance-free, efficient design and high quality features<br />Communities that contribute to healthy lifestyle <br />Source: Future of Master Planned Communities, Robert Charles Lesser & Co.<br />

85.
The Changing American Family<br />Married couples with children: 50% drop since 1960<br />31 million people live alone today (27% of households)<br />Large families now rare – average household now 2.5 <br />72% increase in Americans cohabiting since 1990 <br />9.7 million with opposite-sex partner <br />1.2 million with same-sex partner <br />Majority of couples marrying today have cohabited (55% marry in 5 yrs)<br />Households with multi-generations<br />At highest point in 50 years (recession and job losses)<br />

86.
Demographics: Women<br />By 2014 will be 47% of the workforce<br />More likely to have graduate degrees and/or own small businesses than in past<br />More wives now the higher-income spouse <br />Larger share of women are married to men with less education and income<br />78% of men still earn more than their wives, but the % of wives who earn more has quadrupled since 1970<br />51% of women now living without a spouse:<br />Younger women marrying later <br />Older women outliving spouse or not remarrying after divorce<br />5.8 million are golfers (20% of total golfers, but 60% of Get Golf Ready participants)<br />

97.
What Is A Private Club?<br />A place where people with a common bond congregate for social and recreational purposes<br />Purpose of a private club is to serve its members<br />By definition, it is a place not open to the public<br />Individuals must be accepted for membership before they can join<br />

98.
Tax–Exempt Club<br />Organized for pleasure, recreation, or other nonprofitable purpose<br />“Substantially all” of the club’s activities must be conducted as above<br />No part of club’s net earnings benefit member (inurement)<br />No written policy that discriminates on the basis of race, color, or religion<br />

103.
Liability Issues<br />Privacy more than tax may be the issue<br />However, tax-exempt private clubs may have more exposure<br />Examination<br />IRS will review web site before coming out<br />Reflects exempt purpose for which it was formed<br />Reduce exposure<br />

112.
Sale of club property</li></li></ul><li>Giving Up Tax Exemption<br />Think long and hard before giving up tax status<br />Privacy is still important<br />Excessive UBI can impact enjoyment by members of a club<br />Why join club if anyone can use it?<br />Do not make decisions having long-term impact based on short term economic issues<br />Form 990 disclosure not enough to give up status<br />May not just be able to give it up<br />